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Dáil Éireann debate -
Tuesday, 29 Nov 1983

Vol. 346 No. 3

Private Members' Business. - Housing (Private Rented Dwellings) (Amendment) (No. 2) Bill, 1983: Second Stage.

I move: "That the Bill be now read a Second Time".

One of the saddest spectacles of our times is seeing fairly regularly in our District Courts very elderly persons, good solid citizens who have given great service to the country over a long lifetime, because they are residing in formerly rent controlled dwellings and their landlords, under legislation introduced in this House, are enabled to have their case for increasing rents, albeit low rents, decided in a District Court.

This House has debated the issue on a number of occasions and there is complete unanimity on all sides that the District Court is not a suitable or appropriate place in which to decide these applications for increases in rent, particularly because of the hardship caused to the tenants involved in court cases with the adversary situation and aggressive cross-examining, etc., which is part and parcel of court proceedings. To avoid that, this House enacted legislation establishing tribunals. Unfortunately, in bringing forward that legislation, those whose cases had already been brought before the courts were not allowed to have them transferred for hearing before the new tribunals.

When the Bill was discussed here last July it was in response to pressure from Fianna Fáil Deputies who had consistently pressured the Minister for the Environment to introduce this urgently needed legislation——

Even though he left it until the last minute we thanked him for coming forward even at that late stage with the Bill. However, this meant that the debate on that occasion was very limited and very little time was given to discussing the merits and de-merits of aspects of the Bill which were causing concern to Members on all sides of the House. On that occasion I asked the Minister if he would consider the points being made and come forward at a later stage with proposals to deal with the difficulties which tenants were facing whose cases had already been brought before the District Court but had not been heard. Since that debate in July nothing has been heard from the Minister for the Environment in regard to these cases. It falls to Fianna Fáil to bring forward, in the form of this Private Members' Bill, proposals to deal with the situation of tenants whose cases are before the courts and who do not derive any benefit from the establishment of the new tribunals.

The purpose of this legislation, therefore, is to amend the Housing (Private Rented Dwellings) (Amendment) Act, 1983, in relation to the applications made to the court before 2 August 1983 but, so far, unheard. The present situation, under section 10 of this Act, is that the applicant, usually the landlord, may withdraw the application and make a new application to the tribunal if the other party consents. The purpose of this Bill is to change that, so that either party, most likely the tenant, without the consent of the other party, can apply to the tribunal despite the fact that the matter has already been referred to the courts. In other words, this Bill will enable tenants to have any application to the District Court made before 2 August 1983 withdrawn and a new application to fix the rent or premises under the 1982 Act, as amended, to be heard by the tribunal established by the 1983 Act. In effect, the proposal will apply equally to landlords and tenants, but in reality, most applications have been made by landlords. The proposed amendment contained in this Bill will also obviate the necessity for both parties to consent to the applications being made. The Bill will ensure uniformity of rents by having as many as possible dealt with by the tribunal or the housing authority and will further ensure that as many cases as possible are heard in the informal setting of the tribunal, rather than before a court which strikes fear into the hearts of many elderly persons.

The proposals in the Bill will not deprive a landlord of the opportunity of having his rent fixed but it will ensure that the rent will be fixed by a more appropriate body, namely the tribunal. As the House knows, Fianna Fáil at all times favoured the establishment of a tribunal and supported the Minister when he introduced the Bill in July last which established the tribunals. The proposal now contained in this short Bill reflects Fianna Fáil's commitment to the tribunals already established and the need for informal procedures to apply to the fixing of rents. The tribunals have many powers to ensure that fair rents are fixed which do not apply to the District Court, such as the power to engage consultants. In these circumstances, it is clear that all Members should support this Bill which represents a positive commitment to the need to ensure that fair rents are applied by the tribunal.

When the Bill establishing the tribunal was being debated in this House on 7 July 1983 the Minister of State at the Department of the Environment, Deputy Quinn, highlighted the advantages in having their cases heard before the tribunal rather than the courts. In Volume 344, column 2515, of the Official Report he stated:

.... the persons coming before District Justices were often unaware of their rights, not properly represented, scared and anxious about the procedures used and of the threat to their homes. The courts did the best they could in these difficult circumstances but there was no way in which they could change the formal and adversary nature of the proceedings which, as every Deputy knows, was of such concern to the often elderly persons who had to appear before them. It is my belief that the proposals contained in the Bill will overcome many of the problems for landlords and tenants coming before the courts and that the structures set up will provide a more suitable forum for the determination of the rents of the dwellings in question.

He goes on to give further examples of the desirability of putting an end once and for all to rent increase applications being heard in the District Court environment which, as everybody in that debate and in previous contributions in this House have emphasised and agreed, is most unsuitable and undesirable, particularly taking into account the age of the majority of the people involved.

A large number of the people who resided in formerly rent controlled dwellings have, in fact, up to now been denied the opportunity of having their cases heard before the tribunal which this House established. Everyone who was here on the occasion of that debate will agree that it was clearly the wish of all sides of the House that the tribunals be established as quickly as possible. When the original Housing (Private Rented Dwellings) Act, 1982, was being debated it was understood that all sides wished to have the tribunals established as quickly as possible. It was understood that that legislation was only the immediate response of the Government of the day to a difficult situation that had arisen following a Supreme Court decision and that the District Court was to be used only in the short term in this context. It was understood by all sides that it never was the intention that any substantial number of cases would fall to be heard before the District Court. The intervention of the General Election in 1982 obviously had a part to play in causing a delay in the Government bringing forward legislation to establish the tribunals. Then, there was a delay in the formation of a new Government and unfortunately the new Government delayed until July when they responded to pressure from Fianna Fáil and finally brought in a Bill. However, the legislation that was brought in then is of little benefit to a very substantial number of tenants. In bringing forward this Bill today we are expressing our concern for those tenants and we are indicating a way in which they can be taken out of their predicament. Our Bill would simply enable either the tenant or the landlord to transfer a case from the District Court to the tribunal if either party so wished.

The Minister has tabled an amendment to our Bill. That amendment reads that:

... Dáil Éireann declines to give a Second Reading to the Bill:

(a) because the Bill would have the effect of removing a right of application to the Courts subsisting at the time of the making of the application and would consequently be in serious risk of being found repugnant to the Constitution, and

(b) because its main provision would have the effect of permitting the respondent to an application to the District Court to withdraw the application against the wishes of the person making the application.

The Minister is opposing the Bill on the grounds that there is a possibility of its being repugnant to the Constitution and also because he is of the opinion that it would have the effect of permitting the respondent to have an application to the courts withdrawn against the wishes of the person making the application. We had contributions in that vein from the Minister of State at the Department of the Environment when this matter was being debated in July last but I do not accept that the reasons given by the Government side are the end of the story. In July last we stated that in our opinion the matter had not been given adequate consideration and that we would not accept that it should be left at that without any action being taken. We said we did not accept that the legal advice being given to the Government on the matter was necessarily the correct advice. We have substantial legal opinion available to us which indicates that the Minister's stand may not be correct. However, I shall return to that at a later stage.

In the interest of the tenants who have been affected so badly up to now, it is incumbent on Fianna Fáil to highlight this difficulty, to bring the question back to the floor of the House and in that way to put as much pressure as possible on the Government to take the necessary steps to ensure that all of these tenants will benefit from the newer situation and have their cases removed from the court.

When the Minister of State, Deputy Quinn, was speaking on this matter on the other occasion he said, as reported at column 2517 of the Official Report for July 7, 1983:

The Bill proposes that, where a person has applied to the District Court to have his case determined and the case has not been determined at the time of the commencement of the Act, he or she should have the right to withdraw the case, with the consent of the other party, and transfer it for hearing before the tribunal. Consideration was given to providing for the automatic transfer of such cases to the tribunal and we wanted to do so, but we have been advised by the Attorney General that such action would be unconstitutional. Similarly, the tribunal could not be given the power to review cases already heard by the District Court except in so far as the cases come up for review in the normal fashion after the five year period had elapsed.

We can see clearly that on July 7 the Minister informed the House that the Attorney General's advice to the Government was that the moves as proposed, and as proposed again in this Bill, would be unconstitutional. But in the amendment which the Minister is putting before the House today he does not seem to be so positive about the constitutionality or otherwise of what we are proposing. The words used now are that there could be a serious risk of the provisions being declared repugnant to the Constitution. In other words, there is a new doubt so far as the Government are concerned, a doubt that did not exist when the matter was being discussed in July last. Consequently the Minister's adamant statement to the House that he had received advice from the Attorney General to the effect that giving either party the right to have his case transferred would be deemed unconstitutional has now been changed to the wording that there would be a serious risk that it might be deemed unconstitutional. Already, then, there is a difference in the opinion of the Government side.

Only last week we had a Bill before the Dáil which proposed providing for the granting of voting rights to British citizens living here. Initially, the Minister of State informed the Dáil that the legal advice was that that Bill would be constitutional but when the debate was coming to a conclusion he agreed with the strong view from Fianna Fáil that there was a possibility that the Bill might be considered to be unconstitutional. There was unanimity on both sides here with the suggestion that the President refer the Bill to the Supreme Court. That is the only way in which a final determination of constitutionality can be made.

In anticipation of the Minister for the Environment inquiring as to why we have decided to bring forward this Bill at this time, I would remind him that we have given the Government a reasonable length of time — since July last — but that we have not had any response to the appeal I made then when I urged the Minister to proceed immediately with the establishment of the tribunals so that the majority of the people concerned might have their cases heard. I urged the Minister also then to take heed of what has been said during the debate and to go back to the Attorney General and seek further legal advice with a view to ascertaining whether what the House was asking might be done. I urged the Minister to do what he could to help. I concluded by saying that we did not wish to do anything that would prevent the Bill becoming law but that we accepted that there was a flaw in it. We still believe that that flaw is there and we have the sorry spectacle of many people waiting to have their cases heard before the District Court, cases which make very sad reading.

I will not go into the mechanics of the decision making of judges in relation to the levels of new rents. That is a more complicated area. I am concerned about the continuation of the hearing of these cases before the District Court. It is incumbent on the Minister to take steps along the lines we are proposing which we claim are not unconstitutional. In making that assertion I appeal to the Minister to accept the Bill — it is very short and consists only of one pertinent section — and let the House pass the Bill and let this question of constitutionality be determined by the appropriate authority, the Supreme Court. I have no doubt that the President would respond to the wishes expressed in Dáil debates and would also respond to appeals which had been made to him by private tenants' action groups in this city. I have here a copy of a letter addressed to the President and dated 21 October 1983 in which a similar request regarding the whole operation of this Act was made by the Donore branch of the Private Tenants' Action Group calling on the President to intervene in view of the fact that there was no response from the Government. If you will allow me, Sir, I will insert a small paragraph from this letter in the record. The letter is signed by Mrs. Sarah Murphy and Mrs. May Hoare. I quote:

Our question, Mr. President, is this ... when a Bill of this kind is enacted — who is appointed to see that it is carried out in the manner envisaged by the legislators? In a Dáil Adjournment Debate on 24 March last, Mr. Ruairí Quinn, T.D. stated that he was aware that perhaps Section 13 of the Act was not being interpreted by the Courts in the way that the legislators wanted it to be interpreted. He further stated that "he would hope that the Courts in the general manner would take note of what we have said today and of what has been said during the passage of the Bill last July so that the proper relationship between what the legislators want, on the one hand, and what the courts have to administer, on the other, is clearly seen and that our intentions are clearly seen. He would take the representations that have been made and bring them to the notice of the Minister for Justice to enable him to handle it in the manner that is appropriate for his jurisdiction.

These people offered the comment:

The very idea of hoping that the courts would take note of what was said re the Bill is utterly ridiculous — when the living standards of so many tenants lay with the proper interpretation of the Bill.

The whole solution to this problem is to get these cases out of the District Court and into the new tribunal situation where, it is to be hoped, all the relevant factors could be more appropriately and properly considered.

We are appealing to the Minister today to accept our Bill and allow the President to refer it to the Supreme Court. I quote an instance where only last week a similar suggestion was accepted by the Minister although he himself was bringing forward the Bill on that occasion. I do not think that the fact that this Bill is being introduced by an Opposition party should be a valid reason for the Government to reject it. We have a role to play here in legislation, albeit not as active a role as Government because of their special position, but this House allows the Opposition the opportunity to introduce Bills of this nature where it sees a serious need exists. In this case we believe that an emergency exists. Legal opinion which the Attorney General is giving the Government need not necessarily be the only legal opinion in this matter, and I suggest that the Minister seek further legal advice from a wider source.

Maybe the position is the Minister can claim that he is correct as the law stands, but let us accept the fact that this House is the only place where laws can be changed and new laws can be made. If the Deputies elected to Parliament are not going to take the initiative and change the laws to safeguard the rights of individual citizens, then there is obviously a very serious omission on the part of the Legislature, and we feel our responsibility rests in acting on behalf of those sections of our community who are not being dealt with fairly. There is no doubt in any-body's mind on either side of the House that the trauma experienced by tenants who have had to suffer the indignities of court hearings in these rents cases is a serious blight on our society today which requires urgent action. There have been moves by certain property companies to capitalise on the situation in anticipation of the Supreme Court decision, and advantage has been taken of elderly citizens in a large number of cases. Serious concern is being expressed at the activities of a company known as the Folio Company, I think, who, I understand, set about purchasing nearly 600 artisan dwellings in this city at a very low price, something around £1,200. They were of little value in view of the rent controls but they were acquired in anticipation of changes in the legislation. Now the tenants in these dwellings which were bought at such a low figure by this Folio Company are finding themselves brought before the District Court to have their rents increased by enormous amounts which is causing great distress to the tenants of these dwellings whose whole enjoyment of life has been sapped away. Anybody who has met with people caught in this situation cannot but have the utmost sympathy for them in the tragedy that has befallen them in their later years.

There is a serious obligation on all of us in this House to stand up, to speak for the weaker sections and to insist that Governments take appropriate actions. It is impossible for these poor people to understand that the TDs in the Dáil, where legislation is passed which has resulted in them finding themselves in such a serious plight, cannot take any action, or so they say. The Minister says he cannot take any action to save them from this difficult situation because the matter is unconstitutional. I tell the Minister that the laws are made here and the laws can be changed here. We appeal to him to act along the lines suggested in our Bill. If there is some other way better than the wording and method implied in the short Bill which Fianna Fáil are proposing here, we will readily welcome it and encourage the Minister to come forward with his own Bill to do what we are asking. If our wording is inadequate in some way, then we appeal to the Minister to come forward with his own Bill but to act on behalf of the people I have spoken of as quickly as possible.

On the whole question of constitutionality, I suspect that that is the only opposition, defence, comment or contribution that the Minister for the Environment is going to make in response to this Bill. I want to say first of all, that the tribunal which is under discussion here was established by the 1983 Act. It must be presumed, therefore, to be constitutional as the Act has been signed by the President and is a law of the land.

At present the parties may, on consent, withdraw the application from the court. That is the position under the 1983 Act. This Bill which we are proposing here merely allows either party to withdraw a case that has not come for hearing in the court and to transfer it to the tribunal. We claim this is not unconstitutional. First, the jurisdiction of the District Court is statutory, not constitutional. It may be added to or taken from by statute. Secondly, specific matters may be excluded from the District Court jurisdiction. For example, actions for libel or slander are so excluded. Thirdly, only the High Court and the Supreme Court have a constitutional jurisdiction unalterable by statute. I should like to refer the Minister to the Sinn Féin funds case in 1950 in the Irish Law Reports. This deals with constitutional jurisdiction. It does not apply to a jurisdiction which was conferred by statute and may be removed by statute. The Sinn Féin case also relates to matters in the purely judicial domain. The fixing of rents is not in such a domain. If it were, the 1983 Act brought in by this Government would be unconstitutional.

Fianna Fáil would not object if the Bill were referred to the Supreme Court by the President to test its constitutionality under Article 26 of the Constitution. This is the constitutional way to deal with the Minister's objection. I believe the Government's motion is an attempt to substitute their view on the Bill's constitutionality by stopping it ever getting to the courts. There is no bona fide doubt about this Bill. The Government are afraid to approach it on its merits because they want to back the landlords who are making exorbitant profits. They are afraid to be seen to do so and, therefore, they have invented this bogus technicality.

People suggest to me that some relatives of people in high places in the Government may have a vested interest in some of the dealings in regard to some of the cases that are being brought before the courts.

May I plead innocence?

I would hope so.

Maybe I have some relatives I do not know about.

I hope the Government will not be inhibited in any way by any involvement or action of people who might be closely related to them in some of the cases that have been given a lot of publicity.

Does the Deputy wish to name names?

That is a serious allegation.

I am saying I hope it is not true.

The inference is rather dangerous.

It has been well publicised in some of our newspapers.

Inferences have been unlimited in recent times.

The debate that we agreed to allow to take place last July had to be short because the Dáil was going into summer recess and there was a considerable amount of legislation that had to be dealt with. We were anxious that the Bill dealing with this matter should be passed into law and that the tribunals be established by the Minister. The debate was a very short one. The point I have made was brought out in that debate. I tabled amendments on behalf of Fianna Fáil and there was also an amendment tabled by The Workers' Party. The Minister rejected them on the grounds that his legal advice was such that they could not be accepted and that he could not promote legislation that was unconstitutional. There is a serious doubt about constitutionality. I have mentioned some of the legal arguments against the Minister's claim that it was unconstitutional. We have had Bills during the years where doubt has existed. I am suggesting there is sufficient doubt to warrant it being referred to the President. I am asking the Minister to do that and to let the tenants have the benefit of the new situation.

During the years the Labour Party have claimed in their policy statements to have a keen interest in the welfare of the weaker sections of the community. Therefore, the Minister for the Environment must be in full sympathy with the case I am making on behalf of these people. I hope his response will be a dynamic, generous and positive one, showing his concern in a real way. Too much lip-service is often offered in matters of this kind. People outside cannot make any change in the present legal situation. That falls to Members of this House and now we are giving the Minister an opportunity to correct what we consider to be a very serious wrong. We are asking him to put an end to the fear and terror to which our elderly citizens are being subjected, not deliberately by anyone involved in the courts system but because of the nature, structure and the procedures of the courts. They are totally unfamiliar to people who in most cases have never had occasion to visit a courthouse and certainly who have not been a participant in legal proceedings. I do not think any words of mine could exaggerate the distress being caused and which will continue to be caused to many hundreds of people. It is not good enough to allow that situation to continue. When the debate was taking place in this House we were concerned to have tribunals set up to have the cases heard before them. Now we know several hundred people will not benefit from the Act and their cases will be heard in the courts.

I claim our Bill is not repugnant to the Constitution and I challenge the Minister to give good legal argument in substantiation of his claim that it is unconstitutional. It is not good enough to come here and tell us the Attorney General told him it was unconstitutional and, therefore, that all of us have to genuflect and walk away. We do not accept that. We want to hear the considered legal opinion of the Attorney General and to have it on the record so that it can be examined by others who may have greater expertise in constitutional law than the present incumbent of that office. He does not hold all the knowledge and I am sure he would be the first to agree with that. If there is serious hardship being caused to so many citizens, surely there is an obligation on us to seek the best possible legal advice and to find a solution? If the will is there, that can be done.

I appeal to the Minister to accept our Bill and to allow the proper court of judgment to decide on the issue of constitutionality. I plead with him to accept the Bill and to allow it to go before the Supreme Court where it can be judged as to its constitutionality. That is the only forum we can accept as final arbiter on this issue. The elderly citizens of this country deserve that of the Labour Party and of the Government. They deserve it for the great service they have given to the country during the years. We should not let them down now.

I move:

To delete all words after "That" and substitute the following:—

"Dáil Éireann declines to give a Second Reading to the Bill:

(a) because the Bill would have the effect of removing a right of application to the Courts subsisting at the time of the making of the application and would consequently be in serious risk of being found repugnant to the Constitution, and

(b) because its main provision would have the effect of permitting the respondent to an application to the District Court to withdraw the application against the wishes of the person making the application.".

It is with some surprise I find we are here tonight discussing this Bill. Deputy Molloy's main contention seemed to be that Fianna Fáil are the good guys in relation to the Rent Tribunal and that it was at the request and the urging on of Fianna Fáil that we introduced the legislation before the summer recess. I think Deputy Molloy will remember right through the period from March to November 1982 on numerous occasions on the Opposition benches both myself and Deputy Quinn and other Members of the Opposition were requesting the then Minister for the Environment to bring forward legislation to set up a Rent Tribunal at a time when the Order of Business was far more orderly than it is presently. But, in fact, we were getting very little response.

The Deputy makes the point that the legislation was perhaps rushed. That might be a slight overstatement but there certainly was an urgency to bring the legislation before the House. A commitment was given during the election campaign and, in fact, I think it was a major achievement that the legislation was introduced in the House before the summer recess. It is less than four months since we introduced the legislation here, legislation which this Bill now seeks to amend. Although the debate concerned was somewhat truncated at the time by the need to set up the Rent Tribunal before the summer recess, I believe the matter which is the subject of this Bill was debated in full at that time. Further, at that time a clear and unequivocal statement was given of the reason why this type of amendment was not acceptable and I regret very much that the Opposition seem intent on seeking party political advantage at this stage in an area of such concern and anxiety for many elderly people in our community.

The intent of this Bill is to amend section 10 of the Housing (Private Rented Dwellings) (Amendment) Act, 1983, to enable either party, the landlord or the tenant, to withdraw a case from the courts and transfer it to the Rent Tribunal. Of course, Deputy Molloy makes the point that it is for this House to legislate, and on that I can only agree with him. In the past we have shown that we have sadly fallen very, very far behind in terms of being the proper forum for legislation, but I think Deputy Molloy will have to agree with me that this House cannot change the Constitution. This proposal which Deputy Molloy is now promoting was one that was examined fully with a view to including it in the 1983 Act itself.

Unfortunately — and I say this while agreeing with the sentiment and objective behind an amendment like this, which is obviously in many ways commendable, and I find myself in agreement with the raison d'être behind Deputy Molloy's amendment to facilitate and relieve the anxieties and the traumas experienced by older people caught up in the courts for the first time in their lives — this course of action was not open to the Government some months ago and is still not open to the Government. The clear advice of the Attorney General was that such a provision would be unconstitutional. Neither the Government in their legislation, nor any individual party to a hearing, can unilaterally withdraw a case from the courts and transfer it elsewhere. This proposed legislation will purport to give such a right and it is the legal opinion available to the Government that this could not be successfully defended from constitutional challenge.

I am somewhat surprised, I have to admit, at the weakness in Deputy Molloy's argument because I felt coming into the House this evening that he would bring forward the weight of legal argument because he was well appraised last summer of the difficulties we had experienced in relation to this particular proposal. I think he was also well appraised, and in agreement perhaps, with the desirability of a proposal such as this which the Minister of State would have willingly and gladly promoted at the time, but it was not possible. I am afraid I am rather saddened at the lack of weight in any legal argument put forward by the Deputy in promoting this Bill this evening. It is very easy for any Opposition to sit back and demand that certain things should be done. They are not charged with the responsibility of implementation. The Government of the day must act responsibily and cannot introduce or support legislative proposals which, it is advised, would be unconstitutional.

What the present Bill would purport to do is put a person, who has properly applied to the courts in accordance with the statutory right given to him in the Housing (Private Rented Dwellings) Act 1982 to have his case determined, in the position of having his case struck out retrospectively, and thus his statutory right denied, by the person who is the opposing party to him in the case. This, we are advised, would be an infringement of his individual rights and would propably leave the Rent Tribunal, to whom the case would go, in the position where its decisions would be challenged in the courts. Apart from the expense and serious inconvenience involved in shifting cases to the Rent Tribunal and back to the courts again on appeal — an expense which would not profit the interests of either landlord or tenant — the stress on the tenants concerned would obviously be considerable.

And who would pay the costs, including those already incurred as a result of the application made to the courts? The landlord could hardly be expected to pay on the double when he did not ask for the case to be transferred. It would hardly be in the tenant's interest to ask him to pay the costs involved. And what of the Rent Tribunal? All parties in the House have expressed themselves to be in favour of the tribunal and it is hardly desirable at this early stage in its existence that it should become embroiled in controversy of this nature with the prospect that its involvement in particular cases could be found unconstitutional. Not only would this be wasteful of tribunal time and taxpayers' money but it would be positively unhelpful to the tribunal which at this stage would naturally be anxious to secure general recognition of its independence and objectivity. Neither can it be definitely asserted that the tenants would benefit from the roundabout the Bill might set up. Is it not quite likely that they would be faced with bills for that rent from the date on which the landlord first gave notice of his intention to apply to the District Court?

Frankly, I do not understand the motives of the Opposition in putting forward this Bill. I think we explained the position fully when the Housing (Private Rented Dwellings) Act, 1983, was going through. Deputies, on both sides of the House would have had it otherwise, but generally accepted the legal position as we explained it to them. I thought, therefore, that there was substantial accord in the matter between the Government and the Opposition. I know there is genuine concern on both sides of the House for elderly persons, more often than not with limited means, when they are involved in tribunals or courts under legislation to have their rents settled and I believe the Government have done all they possibly could to meet the difficulties imposed upon these people under the 1983 Act.

During the debates prior to its enactment we were urged to establish the Rent Tribunal in the shortest possible time. This was done. The tribunal was established and in operation on 2 August, less than one month after the date of the introduction of the Bill, and less than three weeks from the date on which it was signed by the President. The fact the tribunal was established within one month meant that all cases in which landlords had not given statutory notice to their tenants prior to the publication of the Bill that they intended to apply to the court would fall to be dealt with by the tribunal rather than by the court. It is interesting to note that, as Deputy Molloy himself referred to the question of Folio Homes Limited and the fact that that is presently before the courts — in fact a case stated has gone to the High Court in relation to it — I do not think anybody in this House can condone the practice by speculators of buying up city properties, more so in the city of Dublin than any other part of the country.

And irresponsible decisions by valuers as well.

The Minister without interruption, please.

A helpful interruption.

We ensured that the tribunal would be the adjudicating body for as many cases as was legally practicable and that there would be no unseemly last minute rush to the courts. We covered all possible avenues at that time to make sure that when the Bill was brought into effect the maximum number of people possible could benefit from the legislation and we sought to alleviate the hardship people had been experiencing and which came to the notice of all public representatives. Going before the courts and the formalities of court procedure was a traumatic affair for the many elderly people who had never been before the courts previously and there was genuine concern in this House that we would take all possible and reasonable steps as quickly as possible to remove the whole area of rent fixing from the courts, and this was done.

The 1983 Act allowed parties to withdraw cases from the District Court and to transfer them to the tribunal without loss of entitlements where both parties agreed. Positive inducements were also provided to encourage the transfer of cases by setting up new procedures under the Rents Tribunal which would benefit both parties. The hearings would be held in a much more informal manner and anyone who has attended rent tribunal cases to date can see this working in practice with less emphasis on adversary procedures. People who have benefited from the Rents Tribunal have expressed total satisfaction with the manner in which the tribunal are conducting their business. There is no need under the Rents Tribunal procedures for teams of legal and technical experts to cross swords leaving the landlord and tenant to be buffetted by cross-examination and intimidated by oath-taking and ceremony. The informality of the proceedings has proved to be satisfactory to landlords and tenants. Parties can have their cases determined solely by means of written submissions and do not have to appear in person before the tribunal. Everything possible has been done by the Government to ensure that the tribunal will offer a good and fair service that both landlords and tenants will be prepared to use.

I hope the members of the Opposition will not take it badly if I remind them that this is not the sort of issue which should be considered on the basis of party advantage. By now, nearly every Deputy has received representations from constituents concerning their fear of appearing before the courts. For many of the persons concerned it is a matter of very great concern, perhaps the most serious problem they have had to face over a long period. At the centre of their concern is the uncertainty that they feel about being able to live without hindrance in their homes for the remainder of their lives. It is surely the duty of Dáil Deputies on all sides to reassure these people and make them understand that they do have a legal entitlement to security of tenure and that in cases of hardship the Department of Social Welfare's rent allowance scheme will help them.

At the outset Deputy Molloy seemed to question the position the Government are taking in relation to this Bill. He seemed to read into the words "in serious risk of being found repugnant to the Constitution," a weakening of the position as stated by my Minister of State during the debate last July. I can assure the Deputy that it is not a question of a weakening of the position but a question of semantics more than anything else. There has to come a time when the Government must act clearly on the legal advice before them and to make a decision based on that legal advice.

The Deputy referred to the Electoral (Amendment) Bill which has been before this House in the last few weeks and to the fact that Deputies on all sides specifically expressed a desire for that Bill to be referred to the President and by him to the Supreme Court. I could go one further than the Deputy in quoting the advice of three Attorneys General over the past two years on that Bill. They were all in agreement that the point had not been clarified in law in relation to the voting rights for British citizens and because they were not in a position to state categorically that the matter would not be challenged before the courts it was desirable that the matter be clarified as soon as possible rather than attempting to correct the error in a post-election situation because the election could be challenged if the legislation was found to be unconstitutional.

The Deputy mentioned that this Bill would remove from the District Court the cases before it and that this Bill would not be unconstitutional in purporting to remove cases from the District Court which are now legally and lawfully before the court. The 1983 Act refers to the District Court and this is the only court of relevance in the first instance. Cases can be appealed from the District Court to the Circuit and High Courts and the decisions of the Rents Tribunal can be appealed to the High Court on a point of law. In my view, Deputy Molloy's points on that front do not stand up under examination.

One of the unfortunate aspects of this Bill and the fact that we are debating this issue here this evening is the possibility that arising from this discussion we will add nothing but more uncertainty to the whole question of rent fixing before tribunals and before District Courts and that will be of no assistance whatever to the many tenants who are at present very uncertain about their position.

As Minister for the Environment, and with the help of my officials, I have tried to make the position as clear as possible over the past number of months. We have done everything possible to be of assistance to tenants and tenants' organisations in terms of spelling out to them what their rights are under the legislation and in having their legal entitlements brought before the courts or before the Rents Tribunal.

When we entered office we stated at the outset that we would bring forward the legislation and I can assure Deputy Molloy and his fellow Fianna Fáil Deputies that their concern in relation to the cases at present before the District Court is understandable, and that that concern is shared by all Deputies in the Government parties, but that is where the story ends. Hard decisions have to be made on the best legal advice available to the Government and, in the absence of any contrary advice — and none was put forward here this evening — that advice stands.

Why is it unconstitutional?

The point has been made that the Bill would be unconstitutional because we would be removing a right which a citizen has to have his action brought before the court as the legislation stood at that time. We cannot retrospectively deprive a citizen of that right.

The jurisdiction of the District Court is statutory, not constitutional.

The Deputy would be well advised to read the Sinn Féin case in detail because my advice and my own reading of it is that the case would back up the constitutional right of the citizen as interpreted under our Constitution. We cannot remove the right from citizens to bring cases before the District Court, a right which is exercised in the main by the landlords. As our Constitution is interpreted by the Attorney General in his advice to the Government, we cannot remove from the District Court a case or cases which parties have brought before that court.

Surely only the High Court and the Supreme Court have a constitutional jurisdiction.

No. The advice available to us is that the right which the citizen has under the 1982 Act to bring an action before the District Court is such that we do not have the right to tamper with it and unilaterally remove from the District Court cases at present listed.

What is the basis of that argument?

I clarified that, if the Deputy had been listening. I was expecting some argument from the Deputy as the promoter of this legislation. He is well aware from discussions here last July of the difficulties faced. Nothing has been said in the course of this debate to change that position.

The Minister has not spelled out the legal arguments to substantiate what he is saying.

The weight of legal advice available to us is that this Bill would do nothing other than cause more confusion and uncertainty in an area which badly needs time to allow the rents tribunal, the structure set up by this House, to come to grips with the problems.

I trust that from what I have said Deputies opposite will appreciate that the 1983 Act provides that both parties must consent to a case being removed from the District Court and placed before the tribunal. Transfer without consent is not legally possible. There is no choice.

Can the Minister quote any case to substantiate that legal argument?

The Minister without interruptions.

The Deputy did not quote too many cases himself.

We have heard nothing from the Minister except what the Attorney General has said.

I have made a re-statement of the position with which the Deputy is familiar and nothing has changed since the legislation was passed. I agree that it is the duty of Members of this House to pass legislation but we are governed by our Constitution and as we interpret the Constitution it is not possible unilaterally to remove cases from the District Court to the tribunal.

The jurisdiction of the District Court is constitutional.

(Interruptions.)

Deputy Molloy has spoken for 40 minutes and should allow the Minister to conclude.

This proposed legislation would remove the right of going before the District Court to fix rent and that is where the constitutional question arises because there are appeals from the District Court to the Circuit Court and the High Court under the 1982 Act and we would be removing it from the fora of the courts by this Bill.

Deputy Molloy seems to want quotes from particular cases and I am amazed that he should promote a Bill in his name and say that the advice available to Fianna Fáil is that it is not unconstitutional.

That is right.

I have not heard one iota of information which would make me even inquire how the Deputy could stand before the House and say this. He said nothing in the course of his contribution to change the information available to me.

We do not accept that.

I have no alternative other than to ask Deputies opposite not to give the Bill a Second Reading.

The Attorney General's advice has been refuted before.

Is maith liom an deis seo a bheith agam mo chuid smaointe a nochtadh ar an mBille seo atá os comhair an Tí. I am not a legal man but I think I have the capacity to balance what is placed before us and to apply whatever common sense I have to the statements made and thus endeavour to come at what might be a legal premise. If the 1983 Act is already accepted as being constitutional and if tribunals have been established under that Act, why does the Minister fear now that the tribunals might be regarded as being unconstitutional?

I never said anything of the kind.

The Minister expressed fears that it might be regarded as unconstitutional if he were to accept what Deputy Molloy has put to him whereby one party can look for the removal of a case to the tribunal. Why does the Minister see a danger of this being unconstitutional? The Minister has training as a legal man and I would not want to give him the opportunity to throw back at me the terms which might appear to win his case for him and shatter mine.

I would not take advantage——

I know the Minister would if he could.

——because the Deputy is a gentleman.

That is like a prelude to a stab. A Leas-Cheann Comhairle, when the 1982 Act was passing through this House I had the honour and benefit of sitting in the Chair occupied by your good self. I heard expressed at that time the dangers that existed. Reasons were advanced more forcefully and forcibly by the present Minister of State at the Department of the Environment than anyone else why tribunals were much more acceptable than the courts. On Second Stage he said he was rejecting the Bill on the grounds that it did not provide for tribunals. The following evening the present Tánaiste welcomed the legislation and tried to distance himself from Deputy Quinn.

Under this legislation landlords, composite landlords, companies, have bought several houses in certain parts of Dublin city. They put a tenant into a vacant house and charged him or her £70 or £80 and went to court the following day against the neighbour of that person. Based on the rent they were receiving from the new tenant, they were able to convince the court that they were entitled to increase the rent of the neighbour.

The fact that I say that does not suggest that anybody in this House condones it. That is what is happening under the legislation. That is what is happening in our courts where the case is dealt with by legal men who all the while are growing fat on the fees they are getting— auctioneers and consultants many of whom, I fear, are part of the composite new landlordism abusing this legislation.

Deputy Molloy's proposal is an effort to remove the opportunity for such abuse and to bring these matters more correctly before tribunals which were promised by Deputy Burke when he was Minister. The legislation was urgent at the time and 25 April was a vital date in relation to the Supreme Court's decision. At the time the Minister explained that, while he accepted the case being made for the tribunals, in the short-term he would have to confine himself to the courts. He indicated to the House that, with a view to expediting the consideration of these cases, the Government proposed to appoint additional district justices.

The Tánaiste remarked on how easy it is for the Opposition to make a case when they are no longer in Government. I propose to give the other side of the coin and show how easy it is for people in Government to forget what they said in Opposition. As reported at column 1132 of the Official Report of 31 March 1982 Deputy Quinn said:

Deputy Peter Barry is correct in saying that this Bill is substantially the same as the previous one with the exception of sections 13 and 23. When one looks in detail at section 13 one sees that the Fianna Fáil Government have effectively abdicated any responsibility in trying to establish what constitutes a reasonable or just rent and have dumped it all on the shoulders of the over-worked and unskilled justices who have no particular expertise in this field.

That was not Deputy Tunney, or Deputy Molloy, or Deputy Wyse, or Deputy Fitzgerald, or Deputy Lyons speaking. It was Deputy Quinn, confirming what the present Minister for Foreign Affairs had said earlier in the debate, and making the case that the tribunals which were not provided for in that legislation, which he envisaged and which he subsequently introduced, were the ideal mechanism by which these cases should be adjudicated.

I want to refer now to an aspect which has been overlooked. We will leave the tribunals aside for the moment. Take the case of the company to which I referred, Folio Properties, whoever they are. As a member of Dublin Corporation I said to the planning officer that he was never to put in front of me an anonymous application. I wanted the names of the people who were interested in the application. I do not know anybody in Folio Properties, but I know they are indulging in a practice which is as abhorrent to me as the worst form of landlordism in this or any other country. They are planting a tenant, often a friend of their own and charging him £60 or £70. They then walk into the District Court and say they are getting £60 or £70 for the house next door and therefore they must get an increase in rent in respect of 127 Oxmantown Road or wherever it is.

In the legislation is the understandable and welcome provision that the tenant who has been there for 15 years, an old age pensioner whose rent is now being increased to £50, will be subsidised by the State in respect of the increase. When the 1982 Act was going through the House, Deputy Barry and Deputy Quinn were critical of the fact that there was only £6 million in the Estimate to provide such compensation.

Deputy Quinn said that in his constituency he had 4,000 of those people who would all need this subsidy and therefore £6 million was not enough. That £6 million will not fall from the sky. I am not talking about landlords who have been there from the beginning and who have all our sympathy and consideration. I am referring to the new, mushrooming exploiter landlord. What is happening? This House is asking the PAYE sector to suffer subsidised rents, ostensibly for an old age pensioner — which we are all prepared to do — but, in essence, a substantial contribution is merely being made to these rotten landlords. I shall demonstrate the change when one moves from Opposition to Government. We are accused of a certain irresponsibility because we are no longer in Government, but I shall quote the present Minister for Foreign Affairs, then spokesman for matters connected with the environment in respect of the subsidy which was necessary. He was maintaining that the £6 million was not enough:

In the end, it does not matter whether the Department of Social Welfare, or the local authorities, or the Department of the Environment, or some other institution pays the subsidy.

It did not matter, it would have to be paid. I am sure that it was not his intention but he was, in fact, guaranteeing, in respect of these poorly based applications which are moving through the District Courts, the new landlord his increase, wherever it came from. Every Deputy sitting here knows that there is only one place from which it can come and that is from the pocket of the taxpayer. Are we happy that that should continue? Is every Deputy content to tolerate those exploiters taking over and abusing this legislation and are we happy to guarantee that they will get their money, no matter where it comes from?

Deputy Molloy's Bill is an attempt at bringing reason to the existing provisions. It is not a question of trying to upstage the present Government. I could quote ad nauseum, to the point of boring the House, comments from the Minister of State, Deputy Quinn, demonstrating his lack of respect for our courts. He went further than the District Court, he went up the line to the Supreme Court — the good gentlemen who made the original decision which led to the introduction of the initial legislation. He said that they were all out of touch, should not be there at all and did not know the first thing about it. I assume that if he attributes such lack of understanding to the gentlemen in the Supreme Court and High Court, he would not be all that enamoured of the decisions and operation of the District Court.

I am more fortified than I was originally in respect of matters legal. I detected a certain unease in the endeavours of the Minister for the Environment at convincing us that what was proposed in the Molloy Bill might be considered unconstitutional. I do not think that there was any great conviction in what he said. Heartened by that feeling. I shall place on record the legal position as I see it. The tribunal was established by the 1983 Act and must be presumed to be constitutional. That is a fair statement to which nobody could object. At present, the parties may, on consent, withdraw an application from the court. Deputy Molloy in the Fianna Fáil Bill merely wants either party to have permission to withdraw a case and transfer it to the tribunal. I do not see why the Minister for the Environment should anticipate any constitutional problems in that regard. Deputy Molloy has already said that the jurisdiction of the District Court is not a constitutional jurisdiction. It may be added to or restricted by statute. That is the entitlement of the Members of this House. Already we know that specific matters may be excluded from the District Court's jurisdiction. We all know that actions for libel or slander can be so excluded. My understanding is that the High Court only and the Supreme Court have a constitutional jurisdiction, unalterable by statute.

When the Minister of State is replying, and will have changed from that of last year his attitude in attacking the whole court system, he will get a certain relish from defending and protecting the interest of the courts which he so ably attacked last year.

The Minister for the Environment referred to the Sinn Féin funds case. This dealt exclusively with a constitutional jurisdiction. It does not apply to a jurisdiction which was conferred by statute and may be removed by statute. The Sinn Féin case to which the Minister referred also relates to matters in the purely judicial domain. The fixing of rents is not such a domain. If it were, the Government's 1983 Act would have been unconstitutional. Nobody has found the tribunal unconstitutional and I do not see why the Minister should now be expressing such concern. Perhaps he was not aware of Deputy Molloy's real purpose in introducing this Bill. As I have endeavoured to establish, it arises from the abuses which we know exist.

The House may not be aware that some months ago members of this party, including myself, in pursuit of their interests and following on reports made to them visited the courts. We were absolutely appalled at what was happening. I have not dwelt on the emotive business of dragging poor, elderly people before the courts. Naturally, I have a concern for them which is shared by every Member of the House. What I am concerned about is that they are being used as pawns in this exploitation of the taxpayer to the advantage of property owners, developers, legal men and all those who can put a respectable veneer on what would have been rejected by everybody and was rejected when the initial legislation was being introduced. Indeed, as a final note — and I know that he will not mind my saying so — the Ceann Comhairle at the time when the legislation was passing through the House joined with others in expressing his fears that the legislation might be abused by those agencies, those groups, Folio Homes Limited, and the like, who had already begun in anticipation of the quick buck, the quick million, the quick £6 million which Deputy Peter Barry thought was not an adequate provision. They have already demonstrated that what happened was as was feared and the time has come when it should be terminated.

Debate adjourned.
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